Eleven Oaks Realty is proud to present their June 2023 Austin Real Estate Price Report measuring activity in the single family home market.
Despite a Slowdown, Austin is Still a Seller’s Market
If you’ve been in the market, you can tell things are moving a little slower than they were at the peak. We are seeing more price reductions, homes are taking longer to sell and buyers are able to negotiate more favorable terms. Though comparatively speaking, the market has slowed, we are still in a seller’s market. June 2023 saw 4.47 months of inventory, which is inching towards a balanced market, but still very much a seller’s market. Looking at the numbers, sellers are getting 97.7% of their list prices, down only 0.02% in month over month figures. The median price is up 4% from last month at $652,080 and the median time to sell is 21 days, down 12.5% in month over month comparisons. If you ignore the media and look at the numbers, you will see how healthy this market still is.
What does this mean for buyers? Though we are still in a seller’s market, we are in a much more favorable place for buyers than we have seen in years. Buyers are able to take a little more time making decisions and are able to negotiate more favorable terms from sellers. Last year, buyers were basically throwing all of their money at every house, hoping they get one. And, when they did, it might not even be one they liked. Buyers do have new challenges, especially when it comes to financing. However, many will trade the higher interest rate to get into something that works better for their family and refinance when rates go down.
What does this mean for sellers? This market is definitely a different challenge for sellers, but is in no means unfavorable to a seller. We are still in a seller’s market and sellers are only getting, on average, 3% less than they were last year. Given the market and economic challenges, that’s still a strong position to be in, especially considering you’ll save on the buying side. Know it is going to take a little bit longer to sell and you’ll have to put up with more showings and buyer indecision. Set expectations to deal in the reality of the market and you’ll find a buyer.
Austin Median Sold Price Down 3.4%
The median sold home price of a single family home in June 2023 was $652,080, up 4% in month over month figures. When you compare to June 2022, when the median home price was $675k, we are down 3.4% in year over year numbers. All in all, that’s not too drastic of a difference, especially when you consider the differences in the two markets. And, though we did see a decrease from last year, we saw an increase from last month, showing buyers are out there and they’re paying more for properties they want.
Number of Austin Homes Sold Down 17.5%
In June 2023, we had 736 single family homes close escrow compared to 892 in June 2022, showing a 17.5% decrease in year over year numbers. Last month, we had 881 single family homes close escrow, showing a 16.5% decease in month over month numbers. It’s clear there are fewer buyers in the market, but the decrease in demand is not affecting prices as much as we would expect. Buyers are still confident in the direction of the Austin real estate market.
5% Decrease in List Price to Sales Price
In June 2023 sellers received, on average, 97.73% of their list prices compared to 103.2% in June 2022, showing a 5% decrease in year over year numbers. There was no change in list price to sales price in month over month numbers, showing signs of market steadiness.
110% Increase in Time to Sell Home in Austin
It took a median of 21 days to sell a home in Austin in June 2023 compared to 10 days in June 2022, showing a 110% decrease in year over year numbers. Last month the median time to sell was 24 days, showing a 12.5% decrease in month over month numbers. Though we are creeping towards a balanced market, we are still seeing homes move quickly, which is another testament to the health of the Austin real estate market.
Median Price Per Square Foot Down 10%
The median price per square foot of a single family home in Austin was $331 in June 2023, compared to $367 in June 2022, showing a 10% decrease in year over year numbers. Last month, in May 2023, the median price per square foot was $319, showing a 3.8% increase in month over month numbers.
19% Decrease in Total Sales Volume
In June 2023, the total sales volume for single family homes in Austin was $635,997,779 compared to $782,460,000 in June 2022, showing a 19% decrease in year over year numbers. Last month, in May 2023, the total sales volume in Austin was $754.14M, whooping a 15.7% decrease in month over month numbers.
92.7% Increase in Months Supply of Inventory
Perhaps the most drastic metric this month is months supply of inventory. In June 2023, we had 4.47 months of inventory on the market compared to 2.32 months in June 2022 showing a 92.7% increase in year over year numbers. Last month, we had 4.33 months of inventory, showing a 3.2% increase in month over month numbers. Though still in a seller’s market, it will be interesting to see how things shift when demand goes down in August.
11% Decrease in Number of Homes Under Contract
In June 2023, we had 940 homes under contract in Austin compared to 1,060 homes in June 2022 showing an 11% decrease in year over year numbers. Last month, in May 2023, we had 857 homes under contract showing a 9.7% increase in month over month numbers.
Median List Price Up 10.6% & Median Sold Price Down 3.4%
The median list price of a single family home in Austin in June 2023 was $774,000 compared to $699,900 in June 2022, showing a 10.6% increase in year over year numbers. Though there are fewer buyers, sellers are pricing higher, likely to give the illusion of a buyer’s ability to negotiate. The seller knows they will get less than list price, so they price higher to give themselves room to come off their price. That being said, it seems to be an effective strategy as they are getting 97.7% of their list prices and median price is only down 3.4% from last year.
24% Decrease in New Listings
In June 2023, sellers listed 1,316 single family homes for sale in Austin compared to 1,730 in June 2022, showing a 24% decrease in year over year numbers. Last month, there were 1,340 homes introduced to the market, showing a 1.4% decrease in month over month numbers.
24% Increase in Number of Homes for Sale
In June 2023, we had 2,563 homes for sale in Austin compared to 2,060 in June 2022, showing a 24% increase in year over year numbers. Last month, in May 2023, we had 2,450 homes for sale, showing a 4.8% increase in month over month numbers.
June 2023 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for June 2023 Austin home sales below. The most expensive home that sold in June 2023 sold for $4,957,920 and the least expensive home sold for $210,000. Homes ranged in size from 523 sqft – 8,563 sqft with an average size of 2,235 sqft. The average price per square foot for a home that sold in Austin in June 2023 was $374.77 with the lowest being $112.88/sqft and the highest being $1,125/sqft. It took, on average, 38 days to sell a home in Austin and sellers received, on average, 97.81% of their original list prices.
| Beds | Baths | SqFt | List Price | LP/SqFt | Sold Price | SP/SqFt | SP/LP | SP/OLP | ADOM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Min | 1 | 1 | 523 | $230,000 | $120.50 | $210,000 | $112.88 | 71% | 53% | 0 |
| Max | 7 | 8 | 8,563 | $5,195,000 | $1,313.03 | $4,957,920 | $1,125 | 116% | 130% | 360 |
| Avg | 3 | 3 | 2,236 | $876,123 | $385.64 | $849,518 | $375.02 | 97.81% | 94.84% | 38 |
| Median | 3 | 3 | 2,052 | $650,000 | $324.91 | $648,750 | $319.69 | 98% | 97% | 16 |
| Search Criteria | |||
|---|---|---|---|
| Status | Sold | Sold Date | June 2023 |
| Property Type | Single Family Homes | Number Sold | 853 |
| Source: | ABoR Sales Data | Area | Austin |
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Looking at the numbers without any context, you’d say it is time to sell. But, if you’ve been following the Austin market for any length of time, you’ll know this is a much more favorable sellers market than we have seen in years. Buyers are able to negotiate more favorable terms, take a little extra time finding the right house, not be up against 20 offers and usually even negotiate repairs and concessions after inspection. For buyers it feels more like a buyers market compared to the sellers markets of 2020 and 2021. Take advantage of the new market conditions and have a more business like home buying purchase experience.
If you’re looking to buy, get with a knowledgeable mortgage broker who can guide you to getting the lowest interest rate possible. We are starting to see the frenzy pause for a minute, as hesitant buyers wonder what to do. Take advantage of lower demand and get in before interest rates rise again. The best homes are still selling quickly, especially since there are fewer overall choices. If you’re looking to buy, we can help you be successful. We have experienced several market shifts in our careers and know how to navigate them. For more info about buying a home, visit Buy a Home in Austin.
If you need to sell, don’t be discouraged. Know it’s going to take a little more time, but also know that if you stick it out, you’ll be successful. If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
Questions About the June 2023 Austin Real Estate Price Report?
Do you have questions about our June 2023 Austin Real Estate Price Report? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.
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